Minutes - Council Work Session - 11/30/2010

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Councilmember Wise asked about feedback from the end user on dollars or pricing. Mr. Backman said Connections Church is satisfied with $6.45 /square foot, which was derived from an average of Minnesota Renaissance School's range of $5 -$7 /square foot plus actual market of gross rent of $6.40. He noted that others that pay more CAM charges would be in the $7.50 /square foot range or higher. Councilmember McGlone asked if leasing a portion of that building will make it taxable again. Mr. Backman said it will become taxable if less than 50- percent, which is not a problem with Anoka County. Councilmember McGlone asked if this reflected current market rates. Mr. Backman said this would be a comparable rate for Class A and B space. Councilmember Look said they had some concerns with the Minnesota Renaissance School before and asked that staff include a hold harmless clause. Mr. Backman said terms of disclosure have been identified, and that staff has shown the church any known building issues, including some leaks. He added the lower level will not be accessible. Fire Chief Kapler said they will address some minimal securing and exiting issues, adding they will have to address the fact that this is a polling place as well. Mayor Ramsey asked about signage. Mr. Backman said they will use a marquee located on City property that was donated to the City by the Lions in the 1970s. Mr. Backman noted that staff supports the use as an IUP, adding that parking of 66 stalls is based on worship capacity of 232. Gary Dehn, broker, said they intend to enter into an 18 -month lease with month -to -month after that, as they intend to construct a new church in two years. Councilmember Jeffrey confirmed the City isn't expected to pay for any build -outs outside of lock repair. Fire Chief Kapler said the City will pay for lock and fire alarm repair only. Councilmember Look inquired about broker fees. Mr Dehn said customary fees include one month's rent but it is negotiable. It was Council's consensus to have staff move forward with drafting a proposed lease agreement with Connections Church. 2) 2011 - 2015 Capital Improvement Program Finance Officer Lund reviewed staff's report. She noted the public hearing for this document will be held. in January 2011. City Administrator Ulrich said staff recognizes that an item included in the CIP does not necessarily mean it is approved. City Council Work Session / November 30, 2010 Page2of7